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Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value
Foxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.
Sharp to cut LCD production in Osaka plant by half
Remember that brand-spanking new production facility in Sakai City, Osaka that Sharp just christened a few years back? Japan's Nikkei business daily reports that Sharp will be cutting output at that factory by a whopping half for a month or maybe longer -- its second major reduction in a year. The Sakai factory typically makes 1.3 million 40-inch panels per month but was running at 80-90 percent capacity after being idled in April. Sharp continues to be impacted by the same cutthroat competition in the LCD market that has affected Japanese rivals like Hitachi and Sony as the high yen continues to push up pricing for domestically produced goods while dragging down overseas revenues. Sharp, which recently announced its 2012 lineup, is now thinking about reconfiguring the plant to make panels with higher resolutions and other features during the slowdown.
Sharp slowing larger LCD panel production, but Sony to feel the squeeze
Reports have surfaced that Sharp will be lowering the production capacity of its new Sakai LCD panel factory by 20 to 30 percent for the next two months, apparently in response to piling inventory in the US and China as production outpaced demand. Sharp however hasn't verified these claims and dutifully reiterated its expectations to meet sales forecasts for the fiscal year of 2010. If true though, the decision is unlikely to affect production of Sharp's own panels anyway, since they're made at the Kameyama plant in Mie Prefecture, which in contrast to 2008, will supposedly maintain its current production rates. Instead, other TV manufacturers like Sony will experience the pinch, as a result of billion dollar joint venture deal inked last year, which moved production of their 40-inch and above panels to the Sakai facility in question. Philosophically though, if a few less Bravia panels roll off the production line, and no recession-burdened consumer is around to mourn them, would we even care?
Inside Sharp's new LCD factory, we can see our next HDTV from here
The path back to LCD leadership for Sharp begins at its just opened Sakai City manufacturing facility. Being a 10th generation facility means it can roll out more and bigger displays, producing six 60-inch LCDs from each glass substrate, 60% more than older 8g facilities. Check out the pics for a peek at where 72,000 substrates per month will be made, delivering those slim LED backlit televisions getting so much love, along with solar panels (also being installed on the roofs for that extra green vibe that's in vogue these days) and a few of the more than 100,000 energy efficient LEDs lighting the factory itself. Whether your closest HDTV purchase is a turkey fueled memory from last weekend or yet to come, bargain hunters and AV fans alike can appreciate an eyeful of the robots and testing equipment slicing, dicing and stamping screens headed for shelves nearby, whether bearing an Aquos brand or any number of other nameplates.
